Wage Garnishment in Ontario: How Much Can Be Taken and How to Stop It
If a creditor is garnishing your pay — or threatening to — start with the two facts that matter most. First, for ordinary debts like credit cards or loans, a private creditor cannot touch your wages until it sues you and gets a court judgment. Second, even with a judgment, section 7 of Ontario’s Wages Act makes 80 per cent of your net wages exempt from seizure or garnishment: at most 20 per cent of your take-home pay can be redirected, and only a judge can change that number. Support orders are different, and there are several realistic ways to stop or reduce a garnishment. Here is how the rules actually work.
How much of your pay can be garnished in Ontario
The limits come straight from section 7 of the Wages Act:
- Ordinary judgment debts (credit cards, loans, lines of credit): 80 per cent of your wages are exempt, so a creditor can take at most 20 per cent (s. 7(2)).
- Support or maintenance orders: 50 per cent of wages are exempt, so support enforcement can reach up to 50 per cent (s. 7(3)).
- The percentages apply to net wages. For these limits, “wages” excludes amounts your employer is required by law to deduct — income tax, CPP and EI (s. 7(1)).
Neither you nor the creditor can change these numbers by demand. A judge can decrease your exemption on the creditor’s motion (s. 7(4)) or increase it on your motion (s. 7(5)), based on your financial circumstances and anything else the judge considers relevant. The Notice of Garnishment your employer receives says this on its face: the portion of wages that can be garnished may be increased or decreased only by order of the court.
A private creditor needs a court judgment first
A collection agency or bank cannot garnish wages on the strength of phone calls or letters. For a consumer debt the sequence is: you are served with a Statement of Claim; if you do not defend, the creditor gets judgment — often a default judgment; only then can it have the court issue a Notice of Garnishment. The notice is served on your employer (the “garnishee”) and on you. Your employer pays the money to the court, never to the creditor directly, and in Small Claims Court the funds are held 30 days and then shared among the creditors who have filed garnishments.
Garnishment runs under Rule 20.08 of the Rules of the Small Claims Court (which handles claims up to $50,000) and under Rule 60.08 of the Rules of Civil Procedure in the Superior Court of Justice. Once issued, a notice of garnishment can catch pay coming due for up to six years, and it can be renewed — waiting one out is rarely a strategy.
Two important exceptions to “judgment first”:
- The CRA. For tax debts, the Canada Revenue Agency can send your employer a “requirement to pay” under the Income Tax Act without going to court, and CRA guidance indicates it commonly takes up to 50 per cent of net employment income.
- Family support. Support is typically enforced automatically through the Family Responsibility Office by deduction at source, with the higher 50 per cent ceiling.
Income that generally cannot be garnished
According to the Ministry of the Attorney General’s small claims guide, employment insurance, social assistance and pension payments cannot be garnished, even if the funds have been deposited into an account at a financial institution.
Be careful with the flip side: the Wages Act percentages protect wages in your employer’s hands. Once ordinary pay lands in your bank account, it is simply money the bank owes you, and a creditor with a judgment can garnish the account itself — a bank-account garnishment is not capped at 20 per cent. Joint accounts get partial treatment: generally up to 50 per cent of a jointly owed debt can be garnished, subject to a court order.
Five realistic ways to stop or reduce a wage garnishment
- Attack the judgment behind it. Many garnishments rest on default judgments — entered because you never filed a defence, sometimes because you were never properly served. You can move to set aside a default judgment; if the motion succeeds, the foundation for the garnishment disappears and enforcement can be set aside with it.
- Ask the court to increase your exemption. Section 7(5) of the Wages Act lets a judge raise the exempt portion above 80 per cent where that is just, having regard to your financial circumstances — rent, dependants, medical costs. In Small Claims Court a garnishment hearing (Form 20Q) is open to you, the garnishee or anyone with an interest, to sort out any matter related to the notice, including errors about whose pay or how much.
- Negotiate with the creditor. A judgment creditor can agree to a lump-sum settlement or payment terms and end the garnishment. Once a Small Claims judgment is fully paid, the creditor must serve a Notice of Termination of Garnishment on your employer and the court.
- File a consumer proposal or bankruptcy. A consumer proposal triggers a stay of proceedings under section 69.2 of the federal Bankruptcy and Insolvency Act: unsecured creditors generally cannot continue an action, execution or other proceeding — which is what a wage garnishment is. The stay does not stop support enforcement. Whether insolvency beats defending the underlying debt is a real decision point — see consumer proposal vs. defending the lawsuit.
- Defend the claim before judgment exists. If you have only been served — no judgment yet — the garnishment can often be prevented entirely. File a defence, and check the limitation period: Ontario’s basic period is two years, and a claim started too late can be defended on that ground. See whether the debt is too old to sue on and our overview of being sued for debt in Ontario.
Can you be fired over a garnishment?
No. Ontario’s Wages Act protects employees whose employers are served with a garnishment notice — your employer must comply with the notice, but cannot lawfully dismiss or suspend you because of it. Employers cannot ignore a notice either: a garnishee who fails to respond can be held liable for the amounts itself.
FAQ
How much can be garnished for credit-card debt in Ontario? At most 20 per cent of your net wages, and only after the creditor sues and obtains a judgment. A judge can raise or lower that percentage on motion.
Can a collection agency garnish my wages without going to court? No. For private debts there is no wage garnishment without a court judgment. The main exception is the CRA, which can issue a requirement to pay for tax debts without a court order.
Can EI, ODSP, Ontario Works or pension income be garnished? The Ministry of the Attorney General’s guide states these payments cannot be garnished, even after deposit into a bank account. Support enforcement and federal Crown claims operate under different rules.
Does a consumer proposal stop a wage garnishment? Generally yes for unsecured consumer debts — the Bankruptcy and Insolvency Act stay halts most enforcement once the proposal is filed. It does not stop support enforcement.
Worried about a garnishment? Find out where you stand
Whether the right move is a set-aside motion, an exemption motion, a settlement or a defence depends on how the garnishment arose and what the debt really is. Request a free case review and get an Ontario lawyer’s read on the fastest way to protect your pay.
Sources: Wages Act, R.S.O. 1990, c. W.1, s. 7; Rules of the Small Claims Court, O. Reg. 258/98, r. 20.08; Rules of Civil Procedure, R.R.O. 1990, Reg. 194, r. 60.08; After Judgment — Guide to Getting Results, Ministry of the Attorney General; Notice of Garnishment, Form 20E; Limitations Act, 2002; Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, s. 69.2; CRA — Employer who receives a notice of garnishment.
General information for Ontario, not legal advice. Reviewed by Angelos Spingos. Last reviewed July 17, 2026.